Telekom Austria does not see much opportunity for M&A, says CEO – Mobile World Live

Telekom Austria does not see much opportunity for M&A, says CEO

02 DEC 2014

Telekom Austria CEO Hannes Ametsreiter has played down the chances of deal-making, despite the operator mentioning it as a possible objective following last week’s share sale which raised €997 million, according to Reuters.

“I certainly don’t see a lot of room to move at the moment,” he said about possible M&A. “Growth means mainly organic growth.”

But when the share sale was finalised last week, the company said net proceeds could be used to pursue M&A opportunities, among other options. Strengthening operations through in-market consolidation, as well as diversifying in those markets where the operator is currently mobile-only, as well as pursuing new opportunities, were all mentioned.

Actually, Ametsreiter did say if assets were purchased, it would be to offer packages such as television, internet, phone and data services, where Telekom Austria already has a presence. But his comments imply no big deals are being contemplated.

America Movil, a majority owner, wants to use Telekom Austria to facilitate expansion into central and eastern Europe, where the latter has operations in countries such as Bulgaria and Croatia.

Another option for growth could be with its international business clients in regions like Turkey and Latin America, where Telekom Austria is offering a unified product range with America Movil.

The operator had also said it plans to implement an accelerated roll-out of its fibre infrastructure between 2015 and 2018 “in combination with latest technologies to ensure CAPEX efficiency” and meet increasing demand for high bandwidth services in order to “safeguard its network quality leadership in Austria”.

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Saleha Riaz

Saleha joined Mobile World Live in October 2014 as a reporter and works across all e-newsletters - creating content, writing blogs and reports as well as conducting feature interviews...More

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